Post 200: Top D.C.-Area Businesses

VSE Corp. / VSEC

About VSE Corp.

2550 Huntington Ave., Alexandria, Va. 22303
www.vsecorp.com | 703-960-4600 | Founded: 1959

Industry: Government And Professional Services | Category: Top 100 Companies

After a slight revenue decrease in the first quarter, VSE finished 2006 strong, reporting $7.8 million in profit on revenue of $363.7 million, up from a profit of $6.2 million on revenue of $280.1 million in 2005. The company said growth last year was largely due to subcontract revenue associated with work on the Army Equipment Support Program, which refurbishes equipment and develops combat vehicles.
VSE also credited its increased income to the Army's Tanker Ballistic Protection System Program, which overhauls tanker trucks, and continued growth in its BAV division, which helps the Navy sell, lease or give away old ships. Much of VSE's work is done through fixed-price contracts, which tend to have better profit margins than cost-plus-fee jobs, in which contractors are reimbursed for the cost of labor and materials, plus given a fee for overhead and profit.
New contracts awarded to VSE in 2006 represent potential revenue of up to $206 million, said chairman and chief executive Donald M. Ervine. He said the company is also looking at acquisition opportunities that will support continued growth in 2007.
In September, VSE was the prime contractor on a project to reactivate four guided-missile destroyers for the Taiwanese navy. In November, it was one of 15 companies to win a multibillion-dollar Army contract that could continue for 15 years.
The company announced last month that its board had approved a 2-for-1 stock split for shareholders of record on June 11.

Chairman and CEO: Donald M. Ervine

Chairman and CEO: Donald M. Ervine

2007 Financial Data

Total employees: 850 | Local employees: 350

Company Leadership

Donald M. Ervine Chairman, president CEO and COO
James M. Knowlton EVP and president, international group
Thomas G. Dacus EVP and president, federal group
Thomas R. Loftus EVP and CFO
Craig S. Weber EVP

Source: Compensation data provided by Equilar, Inc..

Did You Know

VSE Corp.'s basic business is refurbishing old, decommissioned Navy ships and selling them to the military and to other countries. The largest customer for the company's services is the Defense Department, including agencies of the Navy, Army and Air Force.

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